In 2022, Sam was resident in Ireland and employed in Northern Ireland (NI). He earned £20,000, along with Irish rental income of €5,000.
Sam's income details
| Income details | Value |
|---|
| NI employment income (£20,000) (£1 = €1.173) |
€23,460 |
| Irish rental income |
€5,000 |
| Total income |
€28,460 |
| Taxable @20% |
€5,692 |
| Personal | Credit values | Value |
|---|
| Personal |
€1,700 |
|
| PAYE |
€1,700 |
€3,400 |
| Irish tax due |
|
€2,292 |
| Less credit for UK tax paid |
(£1,530) (£1 = €1.173) |
€1,795 |
| Tax now due |
|
€497 |
How Transborder Workers' Relief operates
Specified amount: €2,292 x (€5,000 / €28,460) = €403
The total tax due is €403
Benefit of Transborder Workers' Relief
This gives a saving of €1,889 (€2,292 - €403).
If the taxpayer had no rental income, the specified amount would be zero.